REDACTED Limiting Competition at or below the Simplified Acquisition Threshold.docx

Control No: W45N7V11450595

Memorandum for Record – Limiting Competition at or below the Simplified Acquisition Threshold

1. Contracting Activity: Army Contracting Command – Redstone Arsenal – Corpus Christi Army Depot, Contracting Office (CCAM-ALC), 9035 Ocean Dr. Bldg 10, Mail Stop 18.

2. Description of Action: Follow-on Requirement

Order #_______ against a single award IDC Contract Modification # _______ to existing PO/TO/DO/Call Order #________________

Pricing/Contract Type: Fixed Price Time & Materials/Labor Hours Cost Reimbursable Hybrid

Funds: Operations & Maintenance, Army (OMA) Other Funds: Army Working Capital Funds, FY: 2021

Name of Proposed Contractor(s) and Address:

Helitune, Inc.

1990 Gordon ST Elk Grove Village, EL 60007-1120

Brand Name Buy: Yes No

3. Description of Services or Supplies: Services contract to provide an annual systems calibration, test, inspection and call out repairs with parts/components replacement support for the Helitune WhirlTrak System located at Corpus Christi Army Depots (CCAD) Whirl Tower #1 and Whirl Tower #2.

The Helitune Whirl Trak System is located at CCAD’s Whirl Tower #1 and Whirl Tower #2 is in direct support of Blade Balance operations for Directorate of Accessories & Rotor Blade Production. The tracking system is used as a quality control device to track helicopter rotor blades repaired or remanufactured at the Corpus Christi Army Depot for use by other agencies of the government.

CLIN 0001 Annual Calibration & Maintenance Support, 1 each $ CLIN 1001 Annual Calibration & Maintenance Support, 1 each $ CLIN 2001 Annual Calibration & Maintenance Support, 1 each $

Total: $

4. Authority:

FAR 13.106-1(b)(1): For purchases not exceeding the simplified acquisition threshold (SAT), only one source reasonably available, urgency, exclusive licensing agreements, brand name, or industrial mobilization.

5. Reasons for Authority Cited: Justification for the purchase of Calibration, Testing, Inspection, Call out Repair to include parts support, and Technical Support for CCAD’s Tower 1 and 2 Helitune WhirlTrak Systems is based on the necessity to supplement the current maintenance support at CCAD for maintaining and keeping this equipment fully operational and to insure any production down-time is minimized to the greatest extent possible.

CCAD has the Depot Maintenance Work requirement to aerodynamically track all UH 60 and CH-47 repaired main rotor blades to a dynamic master blade. This is achieved using the Helitune WhirlTrak System that incorporates a special camera and magnetic pickup for blade position recognition and hardware/software that displays the camera code into a discernable track measurement. These measurements are used by the operator to make appropriate blade tab and weight adjustments. The Original Equipment Manufacturer (OEM) Helitune Inc., 190 Gordon Street, Elk Grove Village, IL. 60007, designed, manufactured and installed the system in 2013. Helitune, Inc. is the only known source for the calibration and maintenance to this system, holds all proprietary rights to software, hardware design, and tech manuals, and is the only source that can satisfy 100% of agency requirements to maintain this equipment, which require maintenance and repair to OEM specifications. Corpus Christi Maintenance Teams do not have the specific training and certifications to calibrate, troubleshoot, and make adjustments or repairs the Helitune Whirl Tracking System at Tower #1 and #2.

The repair/refurbishment of rotor blades and testing the blades prior to issuing to the warfighter is an ongoing annual workload at CCAD and thus will require maintenance annually to maintain equipment in operational status. If the contractor were to quit or go out of business, the alternative plan would be for the government to purchase the data rights and in parallel pursue a replacement brand of tracking system via a procurement/installation contract and this would entail a gap before package with specifications written and funding approved to award.

6. Publicizing Contract Actions: For FAR Part 13 actions, the public display and synopsis requirements of FAR 5.101 and FAR 5.203 do not apply due to an exception at 5.202(a) (13).

7. Market Research:

Conducted by: James Spurgeon– Requirer and Terry Clark – Contract Specialist Dates: 26 May 2021 through 21 July 2021

Personal Knowledge in procuring supplies/services of this type: Research of previous Market Research and contracts awarded in the past for same service: Mr. Spurgeon has 16 years of experience in market research and contract management on similar service contracts of this nature.

Contact with knowledgeable persons in Government and/or industry regarding the commercial nature of this requirement and/or standard industry practice in this area of supplies/services. Identify those contacted by name, title and date of contact: Nolan Martin, CCAD Mechanical Engineer, Monthly contact; Antonio Pinon, CCAD Electrical Engineer, Monthly contact; Bruno Monnier, General Manager Helitune, March 2021; Steve Sennet, RPX Technologies Rep, 25 May 2021; Ken Todd, ACES Systems Rep, 25 May 2021

Results of recent market research review for similar or identical supplies/services:

Mr. Spurgeon submitted an e-mail inquiry to RPX Technologies customer support on 25 May 2021 reaffirming their inability to perform annual calibration and maintenance on the current Helitune Tracking System. RPX Technologies provides Dyna Tracking Systems for the same purpose and provides calibrations to their own systems; phone number 405-896-0026, Support@rpxtech.com, E-mail response on 25 May 2021 from Mr. Steve Sennett of RPX Technologies stating they "still cannot at this time calibrate our Helitune unit."

Mr. Spurgeon submitted an e-mail request to ACES Systems on 25 May 2021 reaffirming their inability to perform annual calibration and maintenance support to our Helitune Tracking System, ACES Systems, phone number 865-671-2003 support@acessystems.com. ACES systems manufactures and sells balancing and tracking systems for helicopter rotor blades. They also provide maintenance and calibration services to their own equipment. Mr. Ken Todd from ACES Systems responded on 25 May 21 stating that they cannot perform the services and that our Helitune tracking system is custom made by Helitune for our purpose and can provide a replacement for our current system Helitune Inc. is custom made specifically for CCADs rotor blade tracking requirements and was installed the Helitune WhirlTrak System on Whirl Tower #1 in 2013. Helitune Inc. is the only known source for calibration and maintenance of the Helitune WhirlTrak System. Helitune Inc. is the Original Equipment Manufacturer (OEM), holds proprietary rights to software, hardware design, tech manuals, and is the only known source that can fully satisfy the agency requirements to maintain this equipment.

8. Other Facts: Previous contracts awarded in the past for same service:

Contract W912NW-21-P-0011, Awarded to Helitune, Inc; Cage: 3KKA6; a Small Business on 02 November 2020; NAICS: 811310; Size Standard: 7,500,000; Firm Fixed Price (FFP); Total Contract Value: $30,804.29; Period of Performance (POP), 12 Nov 2020 to 11 Nov 2022 (However, this is for Whirl Tower #1 only) W912NW-19-P-0070: Awarded to Helitune, Inc; Cage: 3KKA6; a Small Business on 12 Sept 2019; NAICS: 811310; Size Standard: 7,500,000; Firm Fixed Price (FFP); Total Contract Value: $30,052.97; Period of Performance: 12 Sept 2019 - 11 Sept 2020

W912NW-16-P-0146: Awarded to Helitune, Inc.; Cage Code: (3KKA6); a Small Business on 24 August 2016; NAICS: 811310; Size Standard: $7.5M; Firm Fixed Price (FFP); Total Contract Value: $119,851.49; Period of Performance: Base Year - 24 August 2016 - 23 August 2017; Option Year One - 24 August 2017 - 23 August 2018; Option Year Two - 24 August 2018 - 23 August 2019.

W912NW-14-P-0151: Awarded to Helitune, Inc.; Cage: 3KKA6; a Small Business on 2 May 2014; NAICS: 336413; Size Standard: 1000; Firm Fixed Price (FFP); Total Contract Value: $192,140.00; Delivery Date: 8 SEP 2014 W912NW-13-P-0055: Awarded to Helitune, Inc.; Cage: 3KKA6; a Small Business on 30 Nov 2012; NAICS: 336413; Size Standard: 1000; Firm Fixed Price (FFP); Total Contract Value: $148,275.00; Delivery Date: 29 JAN 2013.

9. Technical/Requirements Certification: I certify that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

Typed Name: Marty Whittington Title: Chief (Acting), Division Chief Equipment Maintenance Division

Signature:

10. Contracting Officer Certification/Approval:

I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable based upon price analysis.

I certify that this justification is accurate and complete to the best of my knowledge and belief, and that completing this purchase as a sole source is in the best interest of the Government. Additionally, I approve this justification to limit competition subject to the availability of funds and provided that the services or supplies herein described have otherwise been authorized for acquisition.

Typed Name: Christopher W. Chapple Title: Contracting Officer

Signature:

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